Dumb question maybe, but why are you setting up an S-corp if you're just a single-member LLC? I've heard the tax savings aren't worth the headache until you're making well over $100k profit. Now you've got this whole retirement plan complication too.

Your analysis looks spot-on! You're absolutely correct about the SEP-IRA being your best option for 2023. Just to reinforce what others have said - with your $95,000 W-2 wages from the S-corp, you can contribute exactly $23,750 to a SEP-IRA (25% of compensation), and you have until March 15th to both establish and fund it. One thing I'd add: make sure you're documenting your "reasonable salary" justification well. The IRS scrutinizes S-corp salaries, especially when the salary seems low relative to distributions. Your $95k salary on $405k in sales might raise eyebrows, so having solid documentation about industry standards for engineering consultants will be important. For 2024, definitely go with the solo 401k - the flexibility is unmatched. You'll be able to contribute up to $69,000 total ($23,000 employee + up to $46,000 employer contribution based on your salary). Just remember to establish it by December 31, 2024, though you have until the tax deadline to actually fund it. Also worth noting: if your income continues to grow, consider bumping your salary a bit in 2024. Higher salary = higher retirement contribution limits, and it might help with IRS reasonableness tests.

Pro tip: call them early morning right when they open. The wait times are way shorter then trying mid-day

Same situation here! Filed in January and still showing "processing" status. One thing I learned is that Michigan processes returns in batches, not continuously like the IRS. They typically run major processing cycles 2-3 times per week. Also, if you claimed any credits like the Earned Income Credit or have dependents, that automatically adds extra review time - usually 2-4 weeks beyond the standard processing period.

Accountant here - this kind of "left hand doesn't know what the right hand is doing" situation happens all the time with the IRS, especially with ITIN processing. Here's what you need to know: 1. The CP565 (approval) followed by tax return processing is what matters here 2. The CP567 was almost certainly generated by an automated system that didn't check if an approval had already been issued 3. The fact that your refund was processed using the ITIN is concrete proof that the ITIN is valid in the IRS system For peace of mind, I would recommend keeping all documentation (both notices) indefinitely. Also, when you file next year, include a copy of the CP565 approval notice with your return. One additional step you might consider: request an "Account Transcript" through the IRS website for the tax year in question. This will show the ITIN being used successfully for processing and serve as additional documentation that everything is fine.

I just wanted to add that when you file next year, you might want to attach a cover letter explaining the situation along with copies of both the CP565 and CP567, plus a printout of your transcript showing the return was processed successfully. This creates a paper trail that will help if anyone questions the ITIN validity in the future. Also, keep in mind that ITINs expire if not used on a tax return for three consecutive years. So make sure to use it consistently, even if you're filing separate returns in some years. I've seen this exact issue at least 5 times with clients - contradiction between approval and rejection. In every case, when the return was processed with the ITIN, that trumped any rejection notice. The IRS systems just don't communicate well between departments.

I made a huge mistake last year by putting my estimated tax payments on the wrong line of my 1040. The IRS sent me a letter saying I owed a bunch of money plus penalties, and it took months to get sorted out. Double check where you're entering everything!

This is exactly why I always keep detailed records of all my tax payments throughout the year! For your situation with two types of withholding, I'd recommend creating a simple spreadsheet to track everything before you start filing. List your W-2 withholding amount from box 2, then separately list each quarterly estimated payment you made with the dates and amounts. When you're ready to file, the W-2 withholding goes on line 25a of Form 1040, and your estimated payments total goes on line 26. In TurboTax, these will be in different sections - the W-2 info gets entered when you input your W-2 form, and the estimated payments have their own dedicated section usually under "Federal Taxes" or "Payments." The key thing is to make sure you have documentation for all your estimated payments - either bank records, confirmation numbers, or receipts. This way if the IRS ever questions anything, you have proof of what you paid and when.

You might want to consider submitting Form 911 (Taxpayer Advocate Service Application) if this is causing financial hardship or if your PCS timeline creates special circumstances. The Taxpayer Advocate can sometimes expedite processing when there are compelling reasons. The normal 20-week processing timeframe might be problematic with your military relocation timeline.

@Geoff Richards I completely understand your frustration as a military spouse! The processing times are definitely longer than they used to be. One thing that might help with your PCS timeline - if you're moving overseas or to a combat zone, you may qualify for extended filing deadlines which could give you more breathing room. Also, make sure you keep detailed records of your amended return submission since military families sometimes need to reference tax documents for security clearances or other military processes. Have you considered reaching out to the legal assistance office on base? They sometimes have contacts who can help navigate IRS issues for military families. Hang in there! 🇺🇸